Ind AS 12: Income Taxes#
Scope#
Applies to income taxes including:
- Current tax
- Deferred tax
- Taxes payable by foreign branches
Key Definitions#
- Current tax: Tax payable on taxable profit
- Deferred tax: Tax payable or recoverable in future
- Taxable profit: Profit on which tax is payable
- Tax loss: Excess of allowable deductions over taxable income
Current Tax#
- Measured at expected amounts payable
- Using tax rates enacted at reporting date
- Interest and penalties in accordance with tax law
Deferred Tax#
Temporary Differences
Difference between carrying amount and tax base:
- Taxable temporary differences: Give rise to taxable amounts
- Deductible temporary differences: Give rise to deductible amounts
Recognition
Deferred tax liabilities recognized for:
- All taxable temporary differences
Deferred tax assets recognized for:
- Deductible temporary differences
- Unused tax losses
- Unused tax credits
Measurement
- Use tax rates expected to apply when asset realized
- Use tax rates enacted at reporting date
- Reflect uncertainty about income tax treatments
Presentation#
- Current tax assets/liabilities (net)
- Deferred tax assets/liabilities (net)
- Tax expense (current + deferred)
- Deferred tax in OCI if related to items in OCI
Disclosure Requirements#
- Current tax expense
- Deferred tax expense
- Deferred tax assets and liabilities
- Unrecognized deferred tax assets
- Tax rates used
- Temporary difference differences